Here, I actually agree with the Governor: the budget deficit makes health reform harder, but more urgent. It’s the only way to bring in new money–including federal matching funds–into California. Obviously, it means we’ll have new obligations, but without reform, we’ll be looking at severe health care cuts. Health care is around one-third of the state budget–getting revenues for it helps the entire budget.

Even this year, if we don’t have health reform, then this year will simply mean a step backwards on health care, with the zeroing out of fund for outreach for children’s enrollment and the prescription drug discount program, and the looming SCHIP issue threatening to disenroll children from Healthy Families. The question is whether 2007 will be known for taking steps forward, or steps back.